Leading indicators,
Definition of Leading indicators:
Measurable factors of economic performance that change before (ahead of) the underlying economic cycle starts to follow a particular direction or trend. Since these statistics precede (by one to 12 months) other changes in economic activity, they are used to forecast the forthcoming pattern of the overall economy. Major leading indictors include orders for durable goods, orders for plant and equipment, new housing starts, change in raw material prices, corporate profits and share prices, business formation and failures, and money supply (M2).
How to use Leading indicators in a sentence?
- We had to trust the leading indicators and go forward with our current operation for the well being of our company.
- I just decided to by some stock in Netflix, as the leading indicators like quarterly revenue, new content offered, and share prices all lead me to believe the stock price will continue to rise.
- You should always try and know what the leading indicators will be and be on the lookout for them at all times.
Meaning of Leading indicators & Leading indicators Definition
